Once a month, (or once a year in the latter case), your Accounting department has to deal with month-end and year-end close in JD Edwards. While you might have an established procedure for how to perform this process, there are a few tips and tricks that can make both month-end and year-end close smoother and easier.
Don’t forget to…
- use all your accounting periods.
In addition to the 12 monthly accounting periods, JD Edwards gives you an extra 13th and 14th periods. You can use them to separate adjusting entries and audit entries.
- look at your transactions.
Ensure that you’ve processed and cleared all EDI system F47 inbound and outbound transactions.
- check your work orders.
If you have any work orders that can be closed or canceled, month-end/year-end is the perfect time to do so.
- write new tables before clearing old ones.
Make sure that you write the interoperability transactions EDI of inventory to an audit table before clearing the interoperability tables. (These are the Z-file tables.)
- check integrity reports.
Also, you’ll want to validate that all the account balances reflect the general ledger amounts in those reports.
- perform inventory reconciliation.
Often, companies will perform inventory adjustments instead of physical inventory count because the former is easier, but that can be a big mistake. When it comes to your balance sheet ratios, inventory reconciliation is critical.
Month-End vs Year-End Tasks
One big mistake we notice companies make often is leaving year-end tasks for the end of the year. It’s a bit more up-front work, but if you incorporate year-end tasks into your monthly closing tasks, your year-end close will go by much more smoothly. Of course, there are tasks—like critical subsystem reconciliations—that you should always perform each month.
Units of production (including mileage, units, or depreciation of machinery, equipment, and other assets) is another item to keep an eye on each month. In addition to their relevance to the fixed assets sub-system’s closing process at the end of the year, you should also enter them on a monthly basis to avoid catch-up entries.
One last note on year-end processing: make sure you run your final depreciation for the year before running year-end processing programs. Annual close for current year account balances must be run before you can run depreciation calculations for the next fiscal year.
These were just a few of the tips, tricks, and best practices that will help you survive month-end and year-end close in JD Edwards. You can find more of them in our ebook: JD Edwards Financials 101. It’s bursting at the seams with great information, ranging from how to organize your Chart of Accounts to hot tips for mastering the Job Cost application, not to mention even more month-end/year-end close in JD Edwards.
In need of more specific information? We also have an extensive network of JD Edwards Financials consultants that can help.